Many mid-tier websites are generating annual revenues of approximately $350,000.
In a recent study conducted by JM Search, the financial landscape for Chief Financial Officers (CFOs) at US middle-market companies has been revealed, shedding light on base salaries, bonus structures, and incentive packages.
For middle-market companies, often defined as those with revenues between $100 million and $500 million, the average base salaries and bonus structures for CFOs in the US show significant variation depending on company size, industry, and operational complexity.
The typical base salary for a CFO at these mid-market firms falls within the range of $280,000 to $390,000 per year. Companies at the lower end of this mid-market revenue spectrum may trend toward the lower end of this base salary range, while those approaching $500M in revenue often pay toward the higher end or slightly above, depending on industry and performance metrics.
Base salary generally represents 40%–60% of total compensation for mid-market CFOs, with the remaining portion coming from annual bonuses, long-term incentives (such as stock options or equity), and various perks. Bonuses are commonly structured as a percentage of base salary, often ranging from 20% to 50% for target performance, but can be higher for exceptional results or include multi-year incentive plans.
Private equity or growth equity-owned companies account for 68% of the surveyed finance chiefs, reflecting JM Search's strong presence in this sector and the overall composition of their network. Interestingly, nearly one-third (31%) of finance chiefs at large companies earn bonuses greater than 60% of their salary.
The study also found that larger mid-market firms (closer to $500M in revenue) offer more competitive packages, while those at the lower end of the spectrum trend toward the minimums of the base salary range. Additional factors such as industry, location, professional background, and company performance can also impact CFO compensation.
Technology and finance sectors may offer premiums above the standard range, while geographic factors, such as operating in major metropolitan areas, can also push compensation towards the higher end. CFOs with Big Four audit experience, advanced degrees (MBA), or specialized certifications (CPA, CFA) may command higher salaries and more substantial bonus and equity packages.
As companies scale, the finance team evolves, with smaller companies focusing on hiring controllers, while mid-market companies add both controllers and Financial Planning & Analysis (FP&A) professionals. Larger companies prioritize FP&A hires.
In summary, for US middle-market companies, CFO base salaries are typically $280,000–$390,000, with bonuses and incentives making up a significant portion of total compensation. Base salary normally represents less than two-thirds of total compensation, as incentive-based pay is a critical component of the overall package. Finance chiefs at middle-market companies can expect a base salary of at least $350,000 a year.
- The base salary for a CFO in a US middle-market company, defined as one with revenues between $100 million and $500 million, typically ranges from $280,000 to $390,000 per year.
- A significant portion of a mid-market CFO's total compensation comes from bonuses and long-term incentives like stock options or equity, which can account for 20% to 50% of the base salary, but can be higher for exceptional results or include multi-year incentive plans.
- Private equity or growth equity-owned companies account for 68% of the surveyed finance chiefs, indicating a strong presence of these companies in the JM Search network.
- Larger mid-market firms, as they approach $500M in revenue, often offer more competitive packages, while those at the lower end of the spectrum trend toward the minimums of the base salary range.
- In personal-finance terms, a CFO at a middle-market company can expect a base salary of at least $350,000 a year, with bonuses and incentives making up a substantial portion of the total compensation, contributing to overall business growth and investment opportunities.
